Terex Q4 Profit Tops View, Sales Match; Guides 2014 EPS Below View

(RTTNews) - Construction equipment maker Terex Corp. (TEX) reported Wednesday a profit for the fourth quarter compared to a loss last year, aided by improved margins and double-digit revenue growth. Adjusted earning per share from continuing operations significantly topped analysts' expectations, while quarterly sales matched their estimates. The company also provided earnings guidance for the full-year 2014, well below Street view.

"Overall, 2013 was a good year and I am pleased with the improvements and progress underway at Terex. This past year was a tale of two halves, with the second half of the year significantly stronger than the first half. Our performance in the second half was fueled by the continued strength of our Aerial Work Platforms (AWP) segment and a turnaround in our Materials Handling & Port Solutions (MHPS) segment," Chairman and CEO Ronald DeFeo said in a statement.

The Westport, Connecticut-based company reported net income of $86.4 million or $0.74 per share for the fourth quarter, compared to a net loss of $33.3 million or $0.30 per share in the prior-year quarter.

Income from continuing operations was $84.8 million or $0.72 per share, compared to a loss of $33.2 million or $0.30 per share last year. Excluding items, adjusted income from continuing operations for the quarter was $76.8 million or $0.65 per share, compared to $19.4 million or $0.17 per share in the year-ago quarter.

On average, 20 analysts polled by Thomson Reuters expected the company to report earnings of $0.49 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter grew to $1.81 billion from $1.62 billion in the same quarter last year, and matched sixteen Wall Street analysts' consensus estimate of $1.81 billion.

Backlog for orders deliverable during the next twelve months was about $1.83 billion at December 31, 2013, an decline of 7.5 percent from December 31, 2012.

Operating margin for the quarter expanded 590 basis points to 7.3 percent from last year, with gross profit margin improving 280 basis points, and selling, general and administrative expense, as a percentage of sales, declining 310 basis points from a year ago.

Provision for income taxes for the quarter was $22.3 million, compared to a benefit of $9.2 million in the year-ago quarter.

For fiscal 2013, the company reported net income of $226.0 million or $1.93 per share, higher than $105.8 million or $0.93 per share in the prior year.

Income from continuing operations surged to $209.0 million or $1.79 per share from $77.0 million or $0.68 per share last year. Excluding items, adjusted income from continuing operations for the year was $261.2 million or $2.23 per share, compared to $179.5 million or $1.58 per share in the year ago.

Net sales for the full year grew to $7.08 billion from $6.98 billion in the previous year.

Analysts expected the company to report full-year 2013 earnings of $2.13 per share on annual revenues of $7.26 billion.

Looking ahead to fiscal 2014, the company expects adjusted earnings in a range of $2.50 to $2.80 per share, on projected revenues between $7.3 billion and $7.7 billion.

Street is currently looking for full-year 2014 earnings of $2.91 per share on revenues of $7.69 billion.

"During 2013, we made investments and implemented actions to set us on a course toward increased profitability in 2014 and beyond. We enter 2014 with optimism around our businesses and expectations to deliver improved financial results," DeFeo added.

TEX closed Tuesday's regular trading session at $43.94, up $0.08 or 0.18% on a volume of 3.31 million shares. However, the stock lost $1.94 or 4.42% in after-hours trading.